ANNUAL COMPLIANCES

In general scenario, compliance means adhering to a rule or regulation as and when made effective by the government with respect to any law or order. Compliance by the companies are required to be done in order to make the clean image of the corporate and avoid the penalties as prescribed by the government with respect to non-compliance. Companies need to diligently make efforts in order to comply with the relevant laws, policies, and regulations.

    I would like to discuss:

    What if we  will not comply with the rules and regulations as prescribed by the government from time to time?

    If a legal entity doesn’t comply with the rules and regulations as prescribed by the government from time to time then they will get penalized with fine and if the directors are in default and they will also get penalized under the act whether with fine or imprisonment or both, depending upon case to case.

    Statutory Compliance Checklist for LLP:

    Limited Liability Partnership (LLP) (https://smartbizguru.com/services/limited-liabilty-partnership-registration/) is a combination of partnership firm and a company. LLP is governed by the Limited Liability Partnership Act, 2008 but is regulated by same as that of Company i.e. Registrar of Companies. LLP is a separate legal entity carrying limited liability on its partners and it has perpetual succession. 

    In compliance with the Act, all LLPs are required to adhere to the statutory compliance requirements annually. Here find below the major compliance requirements for an LLP:

    • Books of Accounts: All entities are required to maintain books of accounts on cash or accrual basis. In case of LLPs with a turnover of more than Rs.40 lakhs or capital of over 25 lakhs, the accounts must be audited by a Chartered Accountant.
    • Annual Return Filing: There are two forms which needs to be submitted by LLP’s with Ministry of Corporate affairs:
    1. Form 8: it must be filed within 30 days from end of 6 months of the financial year for disclosing solvency and statements of accounts.
    2. Form 11: it contains the details regarding the partners of the LLP, its due date is 30th May or each financial year.
    • Income Tax Return Filing: All LLPs are required to file income tax return every year irrespective of their profits and income.

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    ANNUAL COMPLIANCE CHECKLIST OF PRIVATE

    Other non-ROC Compliances:

    In addition to the above-mentioned statutory ROC compliances, filing of some of the non-RoC compliance for private limited companies are:

    • TDS/TCS payment 
    • GST payment and GST filing
    • Other payments of periodic dues 
    • Filing of quarterly TDS returns
    • Advance tax payment
    • Filing of IT returns
    • Filing of tax audit reports
    • Tax audits 

     

    Some of the compliances are event based which occurred as when situation demands, example reporting of loan in DPT-3, filing of special resolutions in MGT-14, reporting of appointment/removal of director in DIR-12 etc.

    Annual compliances for NGO/Trust/Section-8 Company

    (https://smartbizguru.com/services/ngo-sec-8-company/):

    S. No. NGO Trust Section-8 Company
    1 PAN application Same All the compliances of private and public limited company are applicable on Section-8 company as well.
    2 Registration under section 12A of the Income Tax Act Separate account for Foreign registration
    3 Registration under section 80G of the Income Tax Act Separate set of records for Foreign contributions
    4 FCRA Registration Same 
    5 TAN application Same
    6 GST registration TIN registration
    7 Professional Tax Compulsory audit of accounts
    8 Retirement Benefit Annual return of Income
    9 Shops and Establishment License Report of Foreign Contributions
    10 none Submission of Annual Account Statement of FC A/c

    Compliance Checklist for Nidhi Company:

    There are two types of compliances 

    1. Generic Compliance
    2. Annual Compliance

    Generic Compliances:

    1. Minimum numbers of members should be 200 within a year of incorporation
    2. Minimum net owned funds should be at least 10 lakh or above
    3. As specified in Rule 14 of Nidhi Rules, 2014, the deposits should be equal to or greater than 10% of the outstanding deposits.
    4. The ratio of net owned funds to the deposit should not exceed from 1:20.
    5. Maintenance of statutory books and registers 
    6. Convening of statutory meetings 

    Annual compliances 

    1. Form NDH-1: Return of Statutory Compliance
    2. Form NDH-2: Extension of time for complying with the requirement of NDH-1
    3. Form NDH-3: Half Yearly Return 
    4. Annual filing in form MGT-7 and AOC-4
    5. Filing of income tax return

    Compliance checklist of

    NBFC(https://smartbizguru.com/services/non-banking-finance-company/):

    • NBS-8 (Annual return to be submitted by NBFCs having asset size between Rs 100 to Rs 500cr)
    • NBS-9 (Annual return to be submitted by NBFCs having asset size below Rs 100cr)
    • Every NBFC shall submit a Certificate from its Statutory Auditor every year to the effect that it is engaged in the business of non-banking financial institution requiring it to hold a Certificate of Registration granted under section 45-IA of the RBI Act.

    Note:- NBS-8/9 has to file on RBI Cosmos Portal within 60 days (i.e 30th May) from the Close of Financial Year.

    • Membership of Credit Information Company(CIC) with:
      • Credit Information Bureau (India) Ltd
      • Equifax Credit Information Services Pvt. Ltd
      • Experian Credit Information Co. of India Pvt. Ltd
    • Highmark Credit Information Services Pvt. Ltd.
    • Registration of Company with Financial Intelligence Unit – India (FIU-IND)
    • Registration of Company with CERSAI(Central Registry of Securitisation Asset Reconstruction and Security Interest)
    • CKYC of Company

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